Russian Rosneft and Beijing Gas agreed to set up a joint venture to develop a network of CNG filling stations in Russia, Rosneft said in a statement on Thursday.
The agreement was signed during the first Russian-Chinese Energy Business Forum this week.
Under the agreement, Beijing Gas will have a 45 percent stake.
"Pursuant to the document, the parties will build about 170 CNG stations in Russia, and consider the options of using LNG as a motor fuel," the statement said.
"The agreement will enable the development of strategic cooperation between the partners in the use of natural gas as an ecological fuel," it added.
Rosneft said the development of the CNG station network in Russia is among key priorities of the company's retail business.
According to the statement, "The use of CNG as a motor fuel will increase the effectiveness of vehicles operation due to transportation cost reduction, and reduce a negative environmental impact of motor vehicles."
By Murat Temizer
Anadolu Agency
energy@aa.com.tr
